Reve Technologies sells $260,000 convertibles in private placements

Investors Typenex, Adar Bays each purchase convertible notes in deal

By Devika Patel

Knoxville, Tenn., Feb. 4 – Reve Technologies, Inc. sold a $225,000 10% convertible note to Typenex Co-Investment, LLC on Jan. 16, according to an 8-K filed Thursday with the Securities and Exchange Commission. It also sold a $55,000 convertible redeemable note to Adar Bays, LLC on Jan. 21, in a deal that priced Dec. 17.

The 15-month Typenex note is convertible into common shares at a conversion price equal to the lesser of $0.60 and 70% of the average of the three lowest closing bid prices of the stock for the 20 trading days preceding the conversion, or, if the stock price is below $0.30, the lesser of $0.60, and 65% of the average of the three lowest closing bid prices of the stock for the 20 trading days preceding the conversion.

The Typenex convertible was sold for $200,000, which takes into account $5,000 of legal and a $20,000 original issue discount and may be prepaid. The proceeds raised consist of $60,000 in cash at closing and three 8% secured promissory notes, for a total of $165,000, with each note maturing in 15 months.

Typenex also received warrants for $57,500 of shares. The warrants are each exercisable at $0.60 for five years. The strike price is a 36.36% premium to the Jan. 15 closing share price of $0.44.

The 8% Adar note includes a deduction of $5,000 of fees for total proceeds to the company of $50,000. It is convertible into common shares at 62% of the lowest trading price of the stock for the 20 trading days preceding and including the conversion date. The convertible is due on Dec. 17, 2015 and may be prepaid at prices ranging from 115 to 145.

Based in Huntington Beach, Calif., the company provides booking and production services to institutional music programs and semi-professional musicians.

Issuer:	Reve Technologies, Inc.
Issue:	Convertible note, convertible redeemable note
Amount:	$260,000
Stock symbol:	OTCBB: BSSP
Market capitalization:	$10.73 million
Typenex note
Amount:	$225,000
Maturity:	15 months
Price:	$200,000 (plus $20,000 original issue discount, plus $5,000 in legal fees)
Coupon:	10%
Conversion price:	The lesser of $0.60, and 70% of the average of the three lowest closing bid prices of the stock for the 20 trading days preceding the conversion, or, if the stock price is below $0.30, the lesser of $0.60, and 65% of the average of the three lowest closing bid prices of the stock for the 20 trading days preceding the conversion
Call:	Yes
Warrants:	For $57,500 of shares
Warrant expiration:	Five years
Warrant strike price:	$0.60
Investor:	Typenex Co-Investment, LLC
Fees:	$5,000
Settlement date:	Jan. 16
Stock price:	$0.44 at close Jan. 15
Adar note
Amount:	$35,000
Maturity:	Dec. 17, 2015
Price:	$29,750 (10% original issue discount and $1,750 in legal fees)
Coupon:	8%
Conversion price:	62% of the lowest trading price of the stock for the 20 trading days preceding and including the conversion date
Call:	At 115 to 145
Investor:	Adar Bays, LLC
Fees:	$1,750
Pricing date:	Dec. 17
Settlement date:	Jan. 21
Stock price:	$0.50 at close Dec. 16

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.